In the opening, Squidward makes a trophy case. SpongeBob and Patrick make it to the finals of the Bikini Bottom Dance-A-Thon competition while Squidward's confidence for the win is crushed when he fails to proceed to the finals, and is subsequently banned for life from the contest (and booted out of the building) when he tries to steal the trophy. Squidward's desire to win coaxes him to be the coach for SpongeBob and Patrick. Squidward wanted to see SpongeBob and Patrick's dance moves, but Patrick ends up with a butt cramp after trying to pass the limbo stick. He ends up rolling around in pain, and Squidward lets him roll out the door. Squidward asks for SpongeBob's moves, but all he has is wiggling his arms, going around and laughing. Squidward soon finds himself inside SpongeBob, which gives him an idea: Squidward gets inside of SpongeBob and controls the dancing.
On the night of the big competition, lots of people come, as well as a coin dancer who wows the crowd and ends with a high rating. SpongeBob thinks he can't compete against that, but Squidward thinks different. When SpongeBob's up, Squidward dances, but the crowd is not enjoying it. Soon, Squidward gets a cramp in some of his tentacles, causing him to scream in pain and hold it whilst hopping around. Soon, the crowd leaves, and Fred is the last to leave. But after catching a glimpse of Squidward reacting to his cramp, he begins to call the crowd back. It isn't long before Squidward has to pull up his knee. And it isn't long when Squidward's remaining tentacles get cramped too, causing Squidward to pull that knee up too, and hold them in pain, causing SpongeBob with no arms or legs, to fall over. The crowd actually applauds at the end, and this wins SpongeBob and Squidward the trophy. SpongeBob pops out his arms and legs and begins to take the trophy, but Squidward beats him to it, causing him to have to swallow the trophy to get to Squidward. SpongeBob then says he couldn't have done it without Squidward, and pulls Squidward out of him, revealing that partnered dancers are disqualified. The trophy is confiscated from Squidward, and it turns out that literally everyone was partnered, even the coin dancer (he had someone named Pedro hidden in his hair, and he had something that popped out coins). The only individual dancer in the contest is number 52, which is indeed Patrick who also got a real cramp like Squidward did, winning him the trophy. SpongeBob says he is impressed with Patrick's new dance, whence Patrick screams before saying "Thanks."
In the epilogue, Sadie comes into her son Tommy's room to find him doing the cramp dance, but Sadie thought he was hurt. She calls 911, but Tommy gets up and tells his mom that he is doing the cramp. Sadie laughs about kids' "crazy dance fads", and soon SpongeBob, Squidward, Mr. Krabs, and Patrick show up. Everyone does the cramp, ending the episode.
When the guy who was performing the coin trick was playing his trick, the "Saber Dance" music is playing. The Saber Dance is the theme to the Buffalo Sabres, a hockey team in Buffalo, New York.
The order of contestants during the Final Dance Contest (before the awarding of the trophy):
A whale holding a ball in a tutu
A costumed seahorse
SpongeBob and Squidward
When Squidward is waiting to audition he is sitting next to dancers 42 and 65 but when SpongeBob and Patrick come up, the dancers are gone *Watch the full episode. 
Sadie wears a light purple dress. In the epilouge, her dress is magenta.
This is the first time there was an epilogue. The second time was No Hat for Pat.
In Mermaid Man and Barnacle Boy IV and various other episodes, when the inside of SpongeBob is seen, he has organs, intestines, a stomach, lungs, a brain, etc. But in this episode, when Squidward was inside SpongeBob, the inside was just a big empty box.
During the auditions, SpongeBob and Patrick partnered up, but you're not supposed to be partnered up in the competition according to the end of the episode.
When Squidward starts getting the cramp there, is a dolphin chirp. This is probably because he is swearing. This is the second time dolphin chirping was used for swearing, and the first time Squidward swears. The first episode which involved dolphin chirping was Sailor Mouth.
Running gag: Squidward keeps running into the limbo stick that SpongeBob and Patrick are holding.
At a scene where Squidward leaves his house to go to the audition, you can see both SpongeBob and Patrick standing still without the pole while Squidward slighly passes them and gets hit by it off-screen.
When Squidward says to SpongeBob, "You have two left feet." SpongeBob's feet pop out and show Squidward he's right, this might be a reference to the episode Neptune's Spatula where SpongeBob says he has two left hands.
When one dancer says "We're nine dancers, actually", there are only six seen on his leg, so including the big dancer, they were 7 dancers, although there could've been more on the backsides of his legs.
When Squidward was teaching SpongeBob to dance his way, and Squidward asks SpongeBob to give SpongeBob his arms, and Squidward takes them, SpongeBob's sleeves aren't on the arm. When they pull out, and Squidward put his arms in SpongeBob's arms place, the sleeves aren't there or on the arm.
This is the second time SpongeBob SquarePants and Squidward Tentacles are called SquidBob and they get morphed together. The first was SquidBob TentaclePants.
This episode is very similar to the Jimmy Neutron episode, "Maximum Hugh", in that all the competitors in a competition were disqualified for cheating, except for one, shown to be the worst performer.
Eugene Krabs does not appear in this episode but he does appear in the epilogue.
This is one of the many times Squidward has taught SpongeBob to do something like dancing (I ♥ Dancing) or using the register (Squid's Day Off).
When SpongeBob is spinning for the competition, the background curtains don't seem to move.
When Squidward and SpongeBob are done with their dance, SpongeBob's legs grow back. When SpongeBob gives his legs to Squidward, he is barefoot, but when they come back, his shoes and socks are seen worn.
Since no partners were allowed, the horse should not have made it to the finals, since horse costumes always require two people.
Error: During the epilogue, instead of 911, Tommy's mom dialed 811.
When everyone is cheering because Patrick won the competition, you can see a cephalopod from the episode Cephalopod Lodge.